THE ASSEMBLY FRANGNG MINORITY MEMBER
‘Sms Bushist Commitee
STATE OF NEW YORK ‘COMMITTEES
ALBANY
DAViO DIIETRO
‘Assembiynan 147" Distt
March 15, 2016
‘Attorney General Eric Schneiderman
Office of the Attorney General
The Capitol
Albany NY 12224-0341
Dear Mr Attorney General:
In 2009, the United States Treasury bought shares in Citigroup and announced a
special tax break so Citigroup could take deductions unavailable to other banks. The
tax break was much criticized at the time by the media and Congress; Democratic
Congressman Dennis Kucinich even asked the Special Inspector General for the
Troubled Asset Relief Program to investigate the decision.
Citigroup appears to have also taken those deductions to reduce its New York State
franchise tax. A whistleblower noticing the deductions, has sued Citigroup (New
York State ex rel. Eric Rasmusen v Citigroup, Inc. #1 15-cv-7826) on behalf of state
taxpayers under the New York False Claims Act ~ taxpayer protection you
championed. The alleged underpayment is $800 million, which under the False
Claims Act trebles to $2.4 billion with penalties.
The False Claims Act also gives the Attorney General the right to join a
whistleblower case, as your office did in the $300 million Sprint litigation There,
adding the weight and honor of the Office of the Attorney General to the case led to
a successful outcome for the people of New York State. In contrast, you recently
declined to join the whistleblower case against Citigroup, however you have not
suggested the lawsuit has any flaw in the facts or law Your only public comments
have been to confirm you will not join the case.
The people of New York deserve more information The dollar amount at stake
would fully fund significant infrastructure projects badly needed by our citizens or
pay for a tax rebate of $300 for every household in the State of New York. We
therefore respectfully request that you explain your decision not to join the False
Claims Act lawsuit against Citigroup. Thank you for your time and consideration.
Sincerely
David J. DiPietro
Assemblyman, 147th District
Dowty DP
ALBANY OFFICE: Room 543, LogilativeOfce Busing. Albany, New York 12248 S18-55-5914, FAX: 816-455 5001
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